83 Grants to Ag Producers, Small Businesses, and Fuel Suppliers across the State
DES MOINES, Iowa, April 23, 2024 – To mark Earth Day 2024, U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield today announced that USDA is investing $10,698,671 in 78 projects across the state to lower energy bills, generate new income, and create jobs for Iowa agricultural producers and rural small business owners with funding through the Rural Energy for America Program (REAP). Another $2,767,919 in grant funding is going to five fuel suppliers to expand access for domestic biofuels through the Higher Blends Infrastructure Incentive Program.
“The latest round of funding for projects in rural Iowa is a real win for expanding renewable energy on farms and small businesses,” said Director Greenfield. “Under the leadership of Secretary Vilsack, USDA is combating the climate crisis with good policy and solid results from lowered energy costs. When ag producers and local business owners save money, they can invest those savings back into their businesses and communities to create jobs. When consumers have more choices at the gas pump, they, too, can save money and benefit from cleaner air.”
Forty-eight REAP project grants totaling $8,454,573 are part of a larger nation-wide announcement today for the program. Thirty other REAP project grants totaling $2,244,098 were made last month.
REAP grants in Iowa
Today’s REAP awards in Iowa include these four examples:
-United Equipment Accessories Inc. in Waverly in Wright County received a $1 million grant to install a 709 kilowatt (kW) solar array at its generator manufacturing facility in Waverly in Bremer County. This project will generate 960,491 kilowatt hours per year, saving $107,684 in costs per year. This is enough electricity to power 88 homes.
-Kay Park-Rec Corporation received a $396,880 grant to install a 338 kilowatt solar array at its commercial outdoor furniture manufacturing business in Janesville in Black Hawk County. This project will realize $31,149 per year in savings and will replace 407,850 kilowatt hours per year—100 percent of previous business use—which is enough electricity to power 43 homes.
-Farmers Electric Cooperative received a $685,337 grant to install a 999.38 kilowatt solar array in Kalona in Washington County. This project will generate 1,386,256 kilowatt hours per year, amounting to $263,389 per year. This is enough electricity to power 127 homes.
-Great Oak Farms received a $500,000 grant to replace mechanical augers and grain carts at its corn production farm business near Emmetsburg in Palo Alto County. This project will realize $35,248 per year in savings and will replace 114,372 kilowatt hours per year—100 percent of previous use—which is enough electricity to power 43 homes.
Higher Blends Infrastructure Incentive Program Grants
These are the five Iowa investments made through the Higher Blends Infrastructure Incentive Program today:
-Hy-Vee Inc. received a $801,320 grant to create infrastructure to expand the sales and use of renewable fuels. Hy-Vee Inc. is the owner of more than 10 fueling stations. This project will install eight E85 dispensers and retrofit thirty-five E15 dispensers at ten fueling stations located in Iowa including locations in Ames, Ankeny, Des Moines, Fairfield, Iowa City, Johnson, Newton, Urbandale, Waukee, and Mount Pleasant. This project is expected to increase the amount of ethanol sold by 3,394,257 gallons per year.
-Fastland LLC received a $411,750 grant to create infrastructure to expand the sales and use of renewable fuels. Fastland LLC is the owner of 10 or fewer fueling stations. This project will install three E15 dispensers, one B20 dispenser, one ethanol storage tank and one biodiesel storage tank at one fueling station in Burlington, Iowa. This project is expected to increase the amount of biofuel sold by 411,508 gallons per year.
-Rainbo Oil Company received a $852,849 grant to create infrastructure to expand the sales and use of renewable fuels. Rainbo Oil Company is the owner of more than 10 fueling stations. This project will retrofit one E15 dispenser, install seventeen E15 dispensers, nine B20 dispensers, and five ethanol storage tanks at four fueling stations located in Iowa including one station in Peosta and three stations in Dubuque. This project is expected to increase the amount of biofuel sold by 2,167,441 gallons per year.
-ROR LLC received a $587,250 grant to create infrastructure to expand the sales and use of renewable fuels. ROR LLC is the owner of 10 or fewer fueling stations. This project will install five E15 dispensers, three B20 dispensers, one ethanol storage tank, and one biodiesel storage tank at one fueling station in Shenandoah, Iowa. This project is expected to increase the amount of biofuel sold by 395,828 gallons per year.
-Gateway Express Inc. received a $114,750 grant to create infrastructure to expand the sales and use of renewable fuels. Gateway Express Inc. is the owner of 10 or fewer fueling stations. This project will install four ethanol dispensers at one fueling station in Ames, Iowa. This project is expected to increase the amount of ethanol sold by 497,299 gallons per year.
Background
Many of today’s projects are funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis.
The projects advance President Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up.
The Rural Energy for America Program (REAP) provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs for American families.
USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31, 2023, Federal Register.
REAP is part of the Justice40 Initiative, which is working to ensure that 40% of the benefits of certain federal investments reach communities that are marginalized, underserved and overburdened by pollution and underinvestment.
USDA’s Higher Blends Infrastructure Incentive Program provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, a clean and affordable source of energy. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers, and storage tanks.
USDA continues to accept applications for funding to expand access to domestic biofuels. These grants will support the infrastructure needed to reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks. Applications are being accepted quarterly through Sept. 30, 2024.
Contact USDA Rural Development
USDA Rural Development has 11 offices across the state to serve the 1.3 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.
To learn more about investment resources for rural areas in Iowa, call (515) 284-4663 or visit www.rd.usda.gov/ia. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal, and high-poverty areas.
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USDA is an equal opportunity provider, employer and lender.